TEHRAN, Apr. 19 (MNA) – Azerbaijani Economy Minister Shahin Mustafayev hailed the amicable relations between Tehran and Baku, saying the ties are developing intensively and can benefit both sides in different economic sectors.

He was speaking at the opening ceremony of the Azerbaijani-Iranian bus and truck production plant in Azerbaijan's Hajigabul Industrial Park on Friday.

Mustafayev particularly noted the high level of bilateral humanitarian ties, successful cooperation in the transport and transit sphere, as well as energy, oil and gas, trade sectors.

Speaking about joint projects, Mustafayev pointed to the car plant, jointly owned by an Iranian and an Azerbaijani company, which is successfully operating in the Neftchala Industrial Park.

More than 1,000 cars were produced and sold last year, he said.

He added that as part of the visit by Minister of Industry, Mine and Trade of Iran Reza Rahmani to Azerbaijan, meetings are held where issues in the fields of industry and trade are discussed.

Earlier today, the Hajigabul Industrial Park hosted a groundbreaking ceremony for the joint Azerbaijani-Iranian plant for the production of high-quality buses and trucks. The project cost is 10 million euros. At the first stage, the production capacity will be 500 buses and trucks per year, while at the second stage the production capacity will increase to 1,000 buses and trucks.

The bus and truck production plant will be focused both on the local Azerbaijani market and on exports to neighboring countries.

During the Iranian delegation's visit to Baku, Azerbaijan’s AzerMash OJSC and the Iranian trailer manufacturing company, Maral,l signed a Memorandum of Understanding on establishing a joint trailer production plant.

The two sides also signed a distribution contract that provides for the sale of trailers for high-capacity vehicles in Azerbaijan.